Saracen (SAR) released December Q results with record production of 120.2koz at an all-in sustaining cost (AISC) of A$1,098/oz (up 25% on ounces and up 14% on costs). This incorporated the Kalgoorlie Consolidated Gold Mines Joint Venture (KCGM JV) production for the month of December of 20.6koz, following the 50% acquisition from Barrick for US$750m (see research report: Supersize Me). Subsequent to Northern Star’s (NST) acquisition of Newmont’s remaining 50% in KCGM, the two like-mined, nimble mid-tier miners will now look to unlock value in the assets through operational reviews and updating JORC Resources. SAR plans to update its Resources and Reserves and FY21 group production guidance in the September Q 2020. BUY recommendation maintained.
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